The RM10mil facility was constructed by MMC Gamuda KVMRT (T) Sdn Bhd, measuring approximately 0.26ha in land area, the CLQ in Cochrane has four main blocks with 54 rooms and a sub-block consisting of nine rooms.

In addition, he said MRT Corp has been paying its contractors on time and has pushed its contractors to submit certificate of completion and compliance in order for them to claim payment.

“The contractors are not unhappy. They are paid on time. We have not received one complaint,” Azhar said in an update briefing on the MRT yesterday.

He estimated the cost for construction and systems for the Sungai Buloh-Kajang line project at RM23bil.

Azhar said RM3.1bil was initially expected to be spent for land acquisition cost. However, the Government saved some RM1.5bil as MRT Corp signed mutual agreement to co-exist, without acquiring some properties.

On risk of cost overrun, Azhar said it remained a concern for MRT Corp. “We monitor our risk every day. It is a daily concern for us.”

He noted that its project delivery partner, MMC-Gamuda KVMRT (T) Sdn Bhd, was also responsible for on time delivery and cost.

Azhar said he was satisfied with the progress of the 51km MRT line so far.

“We are on track to begin operation of phase one between Sungai Buloh and Semantan stations by Dec 31, 2016 and the remainder of the line from Semantan to Kajang by July 31, 2017,” he said.

Nevertheless, Azhar said he would like to see better progress of the project to “build enough buffer” in case it encountered any problem in the later stage of the project.

In total, MRT Corp has awarded 68 of the total 86 Klang Valley MRT packages.

Azhar said the remaining 18 packages has a total value of RM2bil, adding that out of the 18, five packages have been called and was currently in progress.

MRT Corp project director Marcus Karakashian said five tunnel-boring machines were currently in operation and has been performing well with good tunnelling rate.

1. Review Real Property Gains Tax (RPGT).
 For gains on properties disposed within the holding period of up to 3 years, RPGT rate
is increased to 30%, whereas for disposals within the holding period up to 4 and 5
years, the rates are increased to 20% and 15%, respectively. For disposals made in the
sixth and subsequent years, no RPGT is imposed on citizens, whereas companies are
taxed at 5%.
 For non-citizens, RPGT is imposed at 30% on the gains from properties disposed
within the holding period of up to 5 years and for disposals in the sixth and subsequent
years, RPGT is imposed at 5%.

2. Increase the minimum price of property that can be purchased by foreigners from
MYR500,000 to MYR1,000,000.

3. Increase transparency in property sales price, where property developers will have to
display detailed sales price including all benefits and incentives offered to buyers such as
exemption of legal fees, stamp duty, sales agreements, cash rebates and free gifts.

4. Prohibit developers from implementing projects that have features of Developer Interest
Bearing Scheme (DIBS), to prevent developers from incorporating interest rates on loans
in house prices during the construction period. Therefore, financial institutions are
prohibited from providing final funding for projects involved in the DIBS scheme.

KUALA LUMPUR (Oct 8): Mass Rapid Transit Corporation Sdn Bhd (MRT
Corp) has expressed its confidence that the first phase of the MRT route will
begin operation in December 2016 followed by the second phase in July
2017.

MRT Corp strategic communications and public relations director Amir
Mahmood Razak said this optimism was based on uninterrupted
construction works – thanks to the efficiency of all parties involved.

To ensure safety and smooth traffic flow in the vicinity of construction sites, he
said MRT Corp provided facilities for emergency rescue team to response to
public complaints and emergency cases.

Covered pedestrian walkways are being built while notices on road closure
are placed around project sites, he said after visiting the Maluri MRT Station
in Cheras here today.

From Public Invest Research – Gamuda’s RM3.5bn outstanding orderbook, mainly from KVMRT Line 1 (tunneling) worth RM3.4bn and the rest from Double Tracking, which is at its tail end. Construction for KVMRT 1 is progressing well, will all the Tunnel-boring machines (TBMs) delivered. Four TBMs started tunneling, with another 2 expected to be mobillised on site by end-2013. We understand that KVMRT 2 (worth c.RM25bn) is expected to get formal approval by end-2013 and the Group is targeting similar role i.e. underground works and PDP for elevated portion. Gamuda estimates 2-year lead time before it can start building the second line. Separately, we understand that disposal of SPLASH should see closure by 1Q2014. As for the expressway concessions, Gamuda is weighing other options after the proposed sale to the Government seemed to be breaking down.